Traders on the floor of the NYSE, Aug. 15, 2023.
Source: NYSE
The Dow Jones Industrial Average slid Monday following a losing week, as traders weighed a rise in yields to multiyear highs.
The 30-stock Dow lost 224 points, or nearly 0.7%. The S&P 500 hovered below the flatline, while the Nasdaq Composite advanced 0.3%.
The benchmark 10-year Treasury note yield hit a high of 4.35%. That’s its highest level since November 2007.
“I think the path of least resistance is the momentum that you’ve seen coming into this week,” said Jeff Schulze, head of economic and market strategy at ClearBridge Investments. “The 10-year Treasury continues to rise here, and although you did see positive impulse for markets and in particular cyclicals, I think, ultimately, the 10-year Treasury is going to weigh on valuations and put more downward pressure on the markets as the week develops.”
Real estate and utilities were the worst-performing S&P 500 sectors, losing more than 1% each. Johnson & Johnson fell more than 2% to lead the Dow lower.
Tech was the best-performing S&P 500 sector on Monday, up 0.8%. Palo Alto Networks led the gains with a 15% jump after the cybersecurity company reported better-than-expected earnings Friday. The stock was also on pace for its biggest one-day pop in nearly two years.
Shares of Nvidia added 4.4%. Several technology names were also in the green, with Pinterest up 1.6%, Tesla trading higher by 4.8% and Facebook-parent Meta up 1%.
Those moves come after weekly declines on Wall Street, which added to the market’s late-summer slump. The S&P 500 and Nasdaq each fell for a third straight week, while the Dow had its biggest weekly decline since March.
This week, investors are anticipating an address Friday morning from Federal Reserve Chair Jerome Powell at the central bank’s annual symposium at Jackson Hole, Wyoming.
Major retailers are slated to report this week, including Macy’s, Nordstrom and Kohl’s. Key artificial intelligence beneficiary Nvidia and technology firm Snowflake will report after the closing bell Wednesday.
